WELSH sheep farmers in upland areas are receiving £2 per ewe under a Welsh Assembly Government compensation scheme approved by the European Commission last week.

The £9m scheme for sheep farmers in the Less Favoured Area of Wales is designed to help compensate for the effects of the foot-and-mouth disease outbreaks in England last year.

Announcing the approval, Rural Affairs Minister Elin Jones, pictured, said the agreement followed negotiations with the EC over the way the money was divided.

Under state aid rules the EC had to clear the compensation scheme, which was announced in outline in February, to make sure in particular that it did not over-compensate.

Ms Jones said the EC had reservations that the initial proposals, which were based on payment per hectare, might result in over-compensation, and the scheme was revised after negotiation to a headage payment.

“Payments will be released from April 18, based on the data provided in Single Application Forms lodged last May and subject to the form successfully completing administrative checks,” said Ms Jones.

She pointed out that the payment comes on top of the Welsh Government’s £3m for a light lamb welfare scheme, £1m to promote Welsh lamb and beef sales and contribution of £100,000 in recognition of the support for Welsh farming families delivered by the Royal Agricultural Benevolent Fund.

The release of the compensation comes a few weeks after payments began to LFA farmers under the 2008 Tir Mynydd scheme.

Some £24.5m has already been paid with the release of the £4m grazing enhancement due from tomorrow.